New poll... reward program!

Ok. If you're reading this on facebook, I'd like you to take a moment to visit featherslam.blogspot.com. On this website, I have included a new poll asking visitors their preferred compensation in a referral reward program. I'd like for you to go and vote. It will give me an indication to what might motivate people to use word-of-mouth to help me out in my little real estate venture.

Why a referral program? Well, real estate is all about relationships and my network is only so big. In order for me to be a successful real estate agent, I believe that I need to do two things. First, get the word out. Second, work hard to gain the knowledge and trust that is needed to deliver to my clients.

What kind of people am I looking for? Pretty much anyone that is looking to get involved in real estate, either buying or selling. If you're a buyer, I'm free. I do not charge any fees to help you look for a property. I earn a commission only when I help you purchase a home. The money that I am paid comes from the seller's proceeds, so I can help you choose the right home at no cost to the buyer. Nothing! Therefore, if you're referring a buyer to me, I will compensate you if I am able to make a sale. It's a pretty good deal. You get a reward and it does not cost your friends a dime.

Planting the real estate seed...

I'm not going to say that real estate is easy, but getting the word out that I'm going to be a real estate agent is pretty easy. It's a good introduction for people. It allows me to let them know that if they ever need someone to buy or sell a home that I would be available to them. The person may not be ready to buy or sell right away, but at least they know that I will soon be able to help them out.

So, when do I get my licence? Well, that isn't for certain yet. There are three courses that I need to pass first to be eligible. Typically, as I understand, it should take about 6 months to complete. Unfortunately, I don't think I want to spend that much time waiting for the exams to occur. I'm going to push myself to write right away, so that I can begin selling in 2009. I'm not sure if it's even possible with the way the exams are scheduled, but I will push for that.

So, if you're sitting there thinking, I think I would like to help Chad out with getting started in real estate, well, here's something I can do for you now. I'm going to give you a little bit of planning advice. If you're seriously thinking about buying a house in the near future, begin by putting money into an RRSP. You're going to need a downpayment for the house, so you might as well do this. Under a program called the Home Buyer's Plan (HBP), you can withdraw up to $20,000 from your RRSP for your first home. The only catch is that the money has to have been in your RRSP for 90 days. Therefore, before you go and start looking for your home, you should be putting your downpayment into an RRSP, so that you will be able to save on your taxes next year, and have a decent downpayment for your home.

So, how does this help me? Well, first, it gets me 90 days closer to my real estate licence. :P Next, it will also give you a natural buffer for giving yourself enough time to make the right decision on likely your biggest investment decision of your life. That way, I can ensure that you will be a very satisfied customer and that you will refer me to anyone else you know that may be looking at purchasing a home.

Chad the Real Estate Agent

Ok. Maybe I'm nuts. Two careers? I always liked the idea of things like new home sales, residential resales, commercial properties, and property management, but it seems as if I have jumped into the real estate game a little faster than I really had originally expected.

I've ordered the course materials and now I am studying to get my real estate licence. I write the first of 3 exams November 1st. It's a little bit rushed, but I want to complete it before I get too busy with my other job. Once the new year rolls around, I'm not going to have much time to study with all of the curling that I will be doing as well.

Someone told me that it takes about 6 months to complete the set of exams, but I'm going to push myself to try to be done most of my work by the new year. That only gives me about 3 months, but I really don't mind reading the materials because it is of great interest to me.

So, if you're thinking about buying a house in the near future, I'd like to hear from you. As an accountant, I can help you plan different ways to help you save for your house and save some money. As a real estate agent, I can help you find the house you want for the price that is reasonable. The earlier we start the process, the better you will be in the long-run. Buying a house is serious business. It will likely be the single-most important investment in your life, so you want to do your homework. I'm helping people because its what I want to do with my career. I can help you ensure that you will be comfortable with your home purchase.

Bedroom painted

I painted the bedroom at the back of the kitchen before Kristyne had moved in. I wanted to get a coat of paint on the walls because the room looked especially dirty due to a lack of care from the previous tenants. I think the room looks 1000 times better than it did, and that I am proud that I was able to install a light fixture without too much hassle.

I'm not a handyman, but I am learning. Electrical work is definetely not my specialty, so I was glad I was able to do it without any help. I'm also glad that I have not burned down the house either. I guess I am more Al "my mother is huge" Borland than Tim "the tool man" Taylor, but there are plenty of other household improvements that I can certainly screw up, but things are coming along decently.

Hopefully, I will have the ground floor all painted by the weekend (except the kitchen).

Realtor.ca

It looks like there is a new website to check out properties. Formerly, mls.ca the site has now changed to realtor.ca. It appears as if they property search function has combined with google maps to provide precise details of property locations. I have mixed feelings about this. First, I probably just don't like adjusting to something that is new. That being said, I do like the feature where properties are imuputed on a map, so that detailed locations can be seen. This is an added feature for those people that may not be familiar with all of the streets in the area.

Now, I encourage you to keep an eye on properties in your area if you are interested in purchasing a house in the next couple of years. It's good to know the market a little bit, so that you know what you can expect to pay when it comes time. It gives you an idea of what it costs, and it also gives you an opportunity to plan your down payment a little bit better. You may consider investing in RRSP's, tax savings account (new in 2009), or other investment choices while trying to build up a down payment. It's important to plan because there are certain rules and regulations that you need to follow in order to be able to take advantage of tax savings.

I'll probably talk about tax implications a bit more in a future post, but I want people to check out realtor.ca today, so that they can plan on where they would like to live and begin the planning process as soon as they can.

US subprime crisis

In a previous post, I mentioned my desire to become a real estate agent. I want to be able to access some key information and networks that will allow me to maximize the potential in a home that I buy or a home that I buy for someone else. I think it will be a key part of being able to get some deals completed. This doesn't come without consequences.

With the housing market in the US taking a huge hit, many Canadians are concerned about the economy north of the border taking a dive as well. Canadians are stretched financially with 40 year mortgages with no money down. There is a real risk that the market does take a hit as banks have been generous with their loaning policies. To me, this indicates that it may not be the best time to enter the market as a real estate agent. The markets are too volatile.

There are two reasons I believe that there will not be a crash in Canada. First, the banks are still loaning money at rates affordable to them in Canada. Even though they are taking on bigger risks, they are protected with rights to the underlying assets. Mumble jumble to you? Simply put, in the US, the banks borrow money at rate A, but loan out at rate B. Due to the intense competition, rate A is higher than rate B thus the banks are poised to lose money. In Canada, rate A is still lower than rate B.

Why would the banks do this in the US? To make it simple, they want to do business with you. Customer loyalty translates into extra revenue in forms of fees and surcharges. However, when the economy started to slow down in the US, people lost their jobs are were forced to try to sell their homes. Subsequently, the price of homes dropped because there are more sellers than buyers.

My second reason for why Canada will be better off than the US is that our economic fundamentals are better. What does this mean? Well, first off, Canadians are continuously paying off their national debt. We are saving billions of dollars in interest charges while the US is poised to sink $700 billion more this week. This is not including the future interest costs.

Next, we are running surpluses in Canada. Albeit, they have been smaller in recent months, but, nonetheless, our revenues exceed our expenses. Given the slowdown in the US economy, we are poised to feel a slight pinch from our biggest trading partner. What does this mean for the housing market? Well, it means that if we needed a bailout package such as the one in the US, we are in a much better position to fight off a recession. Therefore, people will be better suited to keep their jobs and not be forced to sell their homes. I could be wrong, but I think I make sense.

Therefore, given all of the housing market volatility, I am still poised to become a part-time real estate agent. I have an interest in this kind of stuff and I want to be able to help people as much as I can. This is merely a hobby for me, and not a career. My approach as a real estate agent is that I have information available, but I'm not going to force a sale down your throat. I don't need you to buy a house to put food on my table. I'm an accountant, but I like investment decisions.